diff --git a/optimum/habana/sentence_transformers/st_gaudi_trainer.py b/optimum/habana/sentence_transformers/st_gaudi_trainer.py
index b8f52b6e16..69b476ecf8 100644
--- a/optimum/habana/sentence_transformers/st_gaudi_trainer.py
+++ b/optimum/habana/sentence_transformers/st_gaudi_trainer.py
@@ -322,6 +322,8 @@ def compute_loss(
             and model != self.model  # Only if the model is wrapped
             and hasattr(loss_fn, "model")  # Only if the loss stores the model
             and loss_fn.model != model  # Only if the wrapped model is not already stored
+            and hasattr(model, "module")
+            and loss_fn.model != model.module  # wrapped model differs from orig model
         ):
             loss_fn = self.override_model_in_loss(loss_fn, model)
         loss = loss_fn(features, labels)